BitGo, a cryptocurrency custodian backed by Goldman Sachs, is taking a major step into the crypto world by introducing a new stablecoin, USDS.
Set to launch in January 2025, this stablecoin, pegged to the US dollar, aims to compete with established players such as Tether (USDT) and Circle’s USDC.
What makes USDS unique?
BitGo’s USDS stands out with an innovative approach to revenue sharing. While traditional stablecoins earn interest on their reserves, with most of the revenue going to the issuer, BitGo shares up to 98% of this revenue with network participants. This creates a more inclusive ecosystem where exchanges, liquidity providers, and other institutions are rewarded for their involvement.
Safety and regulations
USDS is issued by BitGo New York Trust Company, a regulated trust company founded in 2021. The stablecoin is backed by short-term treasuries, overnight repos, and cash, providing additional security to users.
Mints and burns without costs
A notable feature of USDS is that qualified users are given the ability to mint and burn USDS without any fees. They can convert USDS to USD, USDC or USDT, which allows for more flexibility and ease of use within the ecosystem.
Future growth of the stablecoin ecosystem
BitGo is determined not to just compete with other stablecoins, but rather to stimulate the growth of the entire ecosystem. The company remains neutral in the market and aims to contribute to the wider acceptance and adoption of stablecoins.
With this launch, BitGo is poised to reshape the stablecoin market and provide new opportunities for participants in the ecosystem.
Source: https://newsbit.nl/bitgo-lanceert-usds-een-nieuwe-stablecoin/
